RTRS-UK TEN-YEAR GILT YIELD FALLS BELOW 2 PERCENT FOR FIRST TIME EVER
Update:
Actually perhaps the fall isn’t that funny because…
RTRS-UK TEN-YEAR GILT YIELD HITS RECORD LOW OF 2 PERCENT IN WAKE OF WEAK UK SERVICES DATA
Howard Archer at IHS is certainly worried:
Service sector data can be volatile from month to month and subject to significant revision
Nevertheless, the reported sharp fall in services output in October is a major blow to GDP growth prospects and significantly fuels concern that the economy could contract in the fourth quarter. The services sector dominates the economy, accounting for some 76% of GDP, and it is going to take a marked pick up in activity in November and December, and/or a significant revision to the October output data, to prevent contraction in the sector in the fourth quarter. Furthermore, hard data for October and November point to marked contraction in industrial production in the fourth quarter.
Who’s laughing now?
More QE anyone?